nVent Electric PLC (NVT) 2023 Q4 法說會逐字稿

Good day, and welcome to the nVent Electric Fourth Quarter 2023 Earnings Conference Call. Please note, this event is being recorded. I would now like to hand the conference over to Mr. Tony Riter, Vice President of Investor Relations. Please go ahead, sir.

美好的一天，歡迎參加 nVent Electric 2023 年第四季財報電話會議。請注意，此事件正在被記錄。現在我想將會議交給投資者關係副總裁 Tony Riter 先生。請繼續，先生。

Thank you, Chuck. And welcome to nVent's Fourth Quarter 2023 Earnings Call. On the call with me are Beth Wozniak, Chair and Chief Executive Officer; and Sara Zawoyski, Chief Financial Officer. They will provide details on our fourth quarter and full year performance and our outlook for 2024.

謝謝你，查克。歡迎參加 nVent 的 2023 年第四季財報電話會議。與我通話的有董事長兼執行長貝絲‧沃茲尼亞克 (Beth Wozniak)；和財務長 Sara Zawoyski。他們將提供有關我們第四季度和全年業績以及 2024 年展望的詳細資訊。

Before we begin, I'd like to remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to future risks and uncertainties, such as the risks outlined in today's press release and nVent's filings with the Securities and Exchange Commission. Forward-looking statements are made as of today. And the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances.

在開始之前，我想提醒您，有關公司預期財務業績的任何陳述均為前瞻性陳述，受未來風險和不確定性的影響，例如今天的新聞稿和nVent 向證券交易委員會提交的文件中概述的風險委員會。前瞻性陳述截至今天為止。本公司沒有義務公開更新此類聲明以反映後續事件或情況。

Actual results could differ materially from anticipated results. Today's webcast is accompanied by a presentation, which you can find in the Investors section of nVent's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for questions after our prepared remarks.

實際結果可能與預期結果有重大差異。今天的網路廣播附有演示文稿，您可以在 nVent 網站的投資者部分找到該演示文稿。對非公認會計準則財務數據的引用在簡報的附錄中進行了調整。在我們準備好的發言之後，我們將有時間提問。

With that, please turn to Slide 3, and I will now turn the call over to Beth.

接下來，請翻到投影片 3，我現在將把電話轉給 Beth。

Thank you, Tony, and good morning, everyone. It's great to be with you today to share our fourth quarter and full year results. 2023 was another outstanding year. Q4 was a record quarter with double-digit sales growth and adjusted EPS exceeding our guidance. This included margin expansion across every segment and robust free cash flow.

謝謝你，托尼，大家早安。很高興今天能與您分享我們第四季和全年的業績。 2023 年又是輝煌的一年。第四季是創紀錄的季度，銷售額成長兩位數，調整後每股收益超過我們的指引。這包括各部門的利潤率擴張和強勁的自由現金流。

For the full year, we had strong growth and execution, resulting in record sales, margins, earnings and cash flow. I am proud of our nVent team and everything we've accomplished. I'm very excited for 2024 with the trends of electrification, sustainability and digitalization. We are well positioned for strong sales and profit growth, driven by our focus on high-growth verticals, new products and acquisitions.

全年，我們實現了強勁的成長和執行力，銷售額、利潤率、收益和現金流均創歷史新高。我為我們的 nVent 團隊和我們所取得的一切感到自豪。我對 2024 年電氣化、永續發展和數位化的趨勢感到非常興奮。在我們對高成長垂直產業、新產品和收購的關注的推動下，我們已做好了強勁銷售和利潤成長的準備。

Slide 4 summarizes our Q4 and full year performance. Fourth quarter sales were up 16%. On an organic basis, sales grew 2%, on top of 15% a year ago. Segment income grew an impressive 31% year-over-year with return on sales of 260 basis points. Adjusted EPS grew 18%, on top of 32% a year ago. And we generated $215 million of free cash flow, up 19%.

投影片 4 總結了我們第四季和全年的業績。第四季銷售額成長 16%。在有機基礎上，銷售額成長了 2%，高於一年前的 15%。部門營收年增 31%，銷售報酬率高達 260 個基點。調整後每股盈餘成長 18%，高於一年前的 32%。我們產生了 2.15 億美元的自由現金流，成長了 19%。

Looking at our vertical performance in the quarter. Infrastructure led up low double digits with strength in Data Solutions. Commercial resi grew low single digits. Industrial declined mid-single digits, impacted by channel inventory adjustments. Finally, Energy was down low single digits, impacted by our exit from Russia.

看看我們本季的垂直業績。基礎設施憑藉數據解決方案的實力引領低兩位數成長。商業儲量成長低個位數。受通路庫存調整影響，工業品下跌中個位數。最後，受我們退出俄羅斯的影響，能源股下跌了個位數。

Turning to organic sales by geography. We saw growth across our key regions. North America grew low single digits and Europe was up slightly. Asia Pacific grew low double digits with solid growth in China. Lastly, organic orders were slightly down in the quarter, reflecting the ongoing channel inventory adjustments. Importantly, sellout was positive. For the full year, we had record sales of $3.3 billion, an increase of 12% and 3% organically. Segment income grew 38% with margins expanding more than 400 basis points. Adjusted EPS was up 28% on top of 22% in 2022. For the full year, we had record free cash flow of $465 million, growing 32%.

轉向按地理位置劃分的有機銷售。我們看到了關鍵地區的成長。北美成長較低個位數，歐洲略有成長。亞太地區實現低兩位數成長，而中國則實現穩健成長。最後，本季有機訂單略有下降，反映出正在進行的通路庫存調整。重要的是，銷售情況良好。全年銷售額達到創紀錄的 33 億美元，有機成長 12% 和 3%。部門營收成長 38%，利潤率擴大超過 400 個基點。調整後每股盈餘在 2022 年 22% 的基礎上成長 28%。全年，我們的自由現金流達到創紀錄的 4.65 億美元，成長 32%。

Let me share a few more highlights. First, we launched 95 new products in 2023, and our new product vitality is now at 22%. New products contributed more than 2 points to our sales growth. We have great momentum in our innovation pipeline. Second, all of our key verticals grew organically in 2023 led by Infrastructure, which includes Data Solutions, power utilities and renewables to name a few. Within Infrastructure, Data Solutions now represents greater than $450 million in sales and grew over 20% in 2023. Finally, we completed 2 acquisitions last year, adding over $400 million in annualized sales that we are investing in to scale and drive growth.

讓我分享一些更多的亮點。首先，2023年我們推出了95款新產品，目前我們的新品活力是22%。新產品對我們銷售成長的貢獻超過2個百分點。我們的創新管道勢頭強勁。其次，我們所有的關鍵垂直產業將在 2023 年以基礎設施為主導實現有機成長，其中包括數據解決方案、電力公用事業和再生能源等。在基礎設施領域，數據解決方案目前的銷售額超過4.5 億美元，到2023 年成長超過20%。最後，我們去年完成了2 項收購，增加了超過4 億美元的年銷售額，我們正在投資這些資金來擴大規模並推動成長。

Looking at the macro trends, we expect electrification, sustainability and digitalization to continue to drive demand. We anticipate government funding to flow this year more so in the back half. On our key verticals, we expect all to grow. Infrastructure is forecasted to have the strongest growth benefiting from investments with the electrification and digitalization trends. We expect continued strong growth for Data Solutions, particularly for our liquid cooling solutions given the acceleration of AI. Industrial is forecasted to grow with investments in automation and reshoring.

縱觀宏觀趨勢，我們預期電氣化、永續發展和數位化將繼續推動需求。我們預計今年下半年政府資金將更流動。在我們的關鍵垂直領域，我們期望所有領域都能成長。受惠於電氣化和數位化趨勢的投資，基礎設施預計將出現最強勁的成長。我們預計數據解決方案將持續強勁成長，特別是考慮到人工智慧的加速發展，我們的液體冷卻解決方案。預計工業將隨著自動化和回流的投資而成長。

Overall, commercial is expected to grow modestly. The need for more labor-saving solutions as well as the increase in power and data infrastructure are expected to drive demand for our products. Residential is expected to remain soft. In Energy, we expect to see growth, particularly in the energy transition supported by decarbonization trends. Overall, I am proud of our nVent team and the record results we delivered in 2023. We continue to change the growth profile of nVent. We believe 2024 will be another year of strong growth and value creation.

總體而言，商業預計將溫和成長。對更多節省勞動力的解決方案的需求以及電力和數據基礎設施的增加預計將推動對我們產品的需求。住宅預計將保持疲軟。在能源方面，我們預計會出現成長，特別是在脫碳趨勢支持的能源轉型方面。總的來說，我為我們的 nVent 團隊以及我們在 2023 年取得的創紀錄的業績感到自豪。我們將繼續改變 nVent 的成長狀況。我們相信 2024 年將是另一個強勁成長和價值創造的一年。

I will now turn the call over to Sara for details on our results as well as our 2024 outlook. Sara, please go ahead.

我現在將把電話轉給 Sara，以了解有關我們業績的詳細資訊以及 2024 年的展望。薩拉，請繼續。

Thank you, Beth. I am pleased to share another quarter of double-digit sales and earnings growth, strong margin expansion and robust free cash flow. Let's begin on Slide 5 with our fourth quarter results.

謝謝你，貝絲。我很高興與大家分享另一個季度的兩位數銷售額和獲利成長、強勁的利潤率擴張和強勁的自由現金流。讓我們從投影片 5 開始看第四季的業績。

Sales of $861 million were up 16% compared to last year, in line with guidance. Organic sales were up 2%, with price contributing 4 points to growth and volumes down 2 points. Acquisitions added a meaningful $99 million to sales or 13 points to growth. Foreign exchange was a 1 point tailwind. Fourth quarter segment income was $189 million, up 31% with incrementals of 37%. Return on sales was 22%, up 260 basis points year-over-year. Our performance was driven by positive price/cost, productivity and accretive return on sales from the ECM acquisition. Price more than offset the impact from inflation of just over $20 million.

銷售額為 8.61 億美元，比去年增長 16%，符合預期。有機銷售額成長 2%，其中價格對成長貢獻 4 個百分點，銷量下降 2 個百分點。收購為銷售額增加了 9,900 萬美元，即成長了 13 個百分點。外匯是 1 個百分點的推動因素。第四季部門營收為 1.89 億美元，成長 31%，增量為 37%。銷售回報率為22%，年增260個基點。我們的業績是由積極的價格/成本、生產力和收購 ECM 帶來的銷售回報率所推動的。價格足以抵消略高於 2000 萬美元的通貨膨脹的影響。

Q4 adjusted EPS was $0.78, up 18% and above our guidance range. Acquisitions contributed $0.06 in the quarter. We generated robust free cash flow of $215 million, up 19% year-over-year. This included higher CapEx investments for growth and capacity.

第四季調整後每股收益為 0.78 美元，成長 18%，高於我們的指導範圍。本季度收購貢獻了 0.06 美元。我們產生了 2.15 億美元的強勁自由現金流，年增 19%。這包括用於成長和產能的更高資本支出投資。

Now please turn to Slide 6 for a discussion of our fourth quarter segment performance. Starting with Enclosures, sales of $402 million increased 7%. The TEXA acquisition contributed 2 points to sales. Organically, sales increased over 4% and with solid price and positive volume.

現在請轉到投影片 6，討論我們第四季的部門業績。從機櫃開始，銷售額達到 4.02 億美元，成長了 7%。收購 TEXA 為銷售額貢獻了 2 個百分點。從有機角度來看，銷售額成長了 4% 以上，且價格穩定，銷量強勁。

Infrastructure grew more than 20% with continued strength in Data Solutions. Commercial resi grew in the quarter with strength in North America. And geographically, North America led up mid-single digits. Europe and China also grew. Enclosures fourth quarter segment income was $85 million, up 17%. Return on sales of 21.1% increased 190 basis points year-over-year, driven by productivity and price cost. For the full year, ROS expanded an impressive 460 basis points.

隨著數據解決方案的持續發展，基礎設施成長了 20% 以上。本季商業儲量有所成長，北美地區表現強勁。從地理位置來看，北美的增幅為中個位數。歐洲和中國也有所成長。機櫃第四季營收為 8,500 萬美元，成長 17%。在生產力和價格成本的推動下，銷售回報率為 21.1%，較去年同期成長 190 個基點。全年 ROS 成長了 460 個基點，令人印象深刻。

Moving to Electrical & Fastening. Sales of $288 million increased 49%. The ECM acquisition contributed 48 points to sales growth. Organic sales were flat with positive price and volumes down modestly. Industrial and Commercial resi grew each -- grew in the quarter. This was offset by a decline in Infrastructure, due to channel inventory adjustments that continued from Q3. Geographically, organic sales growth declined slightly in North America, while Europe was up low single digits. Electrical & Fastening segment income was $85 million, up 60%. Return on sales was 29.6%, up 210 basis points compared to last year on favorable mix and productivity.

轉向電氣和緊固。銷售額達 2.88 億美元，成長 49%。 ECM收購為銷售額成長貢獻了48個百分點。有機銷售持平，價格上漲，銷售小幅下降。工業和商業房地產在本季度均有所增長。這被第三季持續的通路庫存調整導致基礎設施下降所抵消。從地理上看，北美的有機銷售成長略有下降，而歐洲則成長了低個位數。電氣與緊固部門營收為 8,500 萬美元，成長 60%。由於良好的產品組合和生產力，銷售回報率為 29.6%，比去年增長了 210 個基點。

Turning to Thermal Management. Sales of $171 million were down 2% organically. The Russia wind-down impact was approximately 5 points to growth. Overall, volumes were down with price contributing 5 points. The decline in sales was driven by Commercial resi and Industrial. Important to note, Commercial resi improved sequentially, and Industrial MRO was up double digits. In addition, backlog grew year-over-year and energy transition represents nearly 1/3 of the project backlog. Thermal Management segment income of $44 million was flat year-over-year. Return on sales of 25.9% was up 20 basis points year-over-year due to price cost and productivity.

轉向熱管理。銷售額為 1.71 億美元，有機下降 2%。俄羅斯的停產影響大約增加了 5 個百分點。整體而言，成交量下降，價格下降了 5 個百分點。銷售下降是由商業房地產和工業推動的。值得注意的是，商業 Resi 連續改善，工業 MRO 成長兩位數。此外，積壓專案逐年成長，能源轉型佔專案積壓專案的近 1/3。熱管理部門營收為 4,400 萬美元，與去年同期持平。由於價格成本和生產力的影響，銷售回報率為 25.9%，較去年同期成長 20 個基點。

Let's turn to Slide 7 for a recap of our full year 2023 results. We ended the year with record sales of $3.3 billion, up 12% or 3% organically. Segment income grew 38% to $721 million. All segments expanded return on sales. Overall, return on sales expanded an impressive 410 basis points to 22.1%. Adjusted EPS for the full year was $3.06, up 28% and acquisitions contributed $0.16 to the year, exceeding our initial expectations. And free cash flow was $465 million, up 32% with 90% conversion of adjusted net income. In summary, 2023 was an outstanding year.

讓我們轉向幻燈片 7 回顧 2023 年全年業績。年底，我們的銷售額達到創紀錄的 33 億美元，有機成長 12% 或 3%。部門營收成長 38% 至 7.21 億美元。所有部門的銷售回報率均有所提升。總體而言，銷售回報率成長了 410 個基點，達到 22.1%，令人印象深刻。全年調整後每股收益為 3.06 美元，成長 28%，收購為全年貢獻了 0.16 美元，超出了我們最初的預期。自由現金流為 4.65 億美元，成長 32%，調整後淨利的轉換率為 90%。總而言之，2023年是非常優秀的一年。

On Slide 8, titled Balance Sheet and Cash flow, you will see we exited the year with $185 million of cash on hand and $600 million available on our revolver. Our debt stands at just under $1.8 billion, and we have paid down nearly $200 million post acquisitions. We believe our healthy balance sheet and strong cash generation provides us with ample capacity to invest in the business and execute on our growth strategy.

在標題為「資產負債表和現金流」的幻燈片 8 上，您會看到我們在這一年結束時手頭現金為 1.85 億美元，左輪手槍可用現金為 6 億美元。我們的債務接近 18 億美元，收購後我們已經償還了近 2 億美元。我們相信，健康的資產負債表和強勁的現金產生能力為我們提供了充足的能力投資於業務並執行我們的成長策略。

Turning to Slide 9, where we will outline our capital allocation priorities. We continue to prioritize growth and execute a balanced, disciplined approach to capital allocation to deliver great returns. We have invested $71 million in CapEx in 2023, up 55%. This includes new factories and a new distribution center, which will help unlock opportunities where we have constraints. We returned $178 million to shareholders in 2023, including share repurchases of $61 million, and we recently increased our quarterly dividend, 9%.

轉向投影片 9，我們將概述我們的資本配置優先事項。我們繼續優先考慮成長，並執行平衡、嚴格的資本配置方法，以實現豐厚的回報。 2023 年，我們在資本支出上投資了 7,100 萬美元，成長了 55%。這包括新工廠和新配送中心，這將有助於在我們受到限制的地方釋放機會。 2023 年，我們向股東返還 1.78 億美元，其中包括 6,100 萬美元的股票回購，我們最近將季度股息提高了 9%。

We exited the year with a net debt to adjusted EBITDA ratio of 2.1x, well within our targeted range. This is a testament to our strong cash flow generation. We are well positioned for capital deployment in 2024 as we execute on our growth strategy and deliver attractive shareholder returns.

今年結束時，我們的淨負債與調整後 EBITDA 的比率為 2.1 倍，完全在我們的目標範圍內。這證明了我們強勁的現金流產生能力。隨著我們執行成長策略並提供有吸引力的股東回報，我們已做好 2024 年資本部署的準備。

Moving to Slide 10 and our 2024 outlook. We expect reported sales growth of 8% to 10%, with organic growth in the range of 3% to 5%. This assumes positive price and strong volume growth. Acquisitions are expected to contribute approximately 5 points to growth. We expect normal seasonality through the year.

轉到幻燈片 10 和我們的 2024 年展望。我們預計報告銷售額將成長 8% 至 10%，有機成長在 3% 至 5% 範圍內。這是假設價格為正且銷售強勁成長的情況。收購預計將為成長貢獻約 5 個百分點。我們預計全年季節性正常。

Our outlook for full year adjusted EPS is $3.17 to $3.27, which represents growth of 4% to 7%. This includes an $0.11 or 4 percentage point negative impact to EPS related to changes in global tax standards that went into effect January 1.

我們對全年調整後每股收益的預期為 3.17 美元至 3.27 美元，即成長 4% 至 7%。這包括與 1 月 1 日生效的全球稅收標準變化相關的 EPS 0.11 美元或 4 個百分點的負面影響。

A few important items to note for the year. First, we expect segment income to grow 8% to 11% for the year. This reflects positive price plus productivity more than offsetting inflation. In addition, we plan to invest in capacity, new products and digital to accelerate growth and productivity. Second, we expect free cash flow conversion in the range of 95% to 100%, or over $500 million. This reflects higher CapEx investments and improvements in working capital. And third, we expect our adjusted tax rate to be approximately 23% versus 19.5% in 2023. This reflects a 2.5 point rate impact from the change in global tax standards. The remaining rate increase relates to our income mix and includes a full year of ECM.

今年需要注意的一些重要事項。首先，我們預期今年分部營收將成長8%至11%。這反映了積極的價格加生產率，而不僅僅是抵消了通貨膨脹。此外，我們計劃投資產能、新產品和數位化，以加速成長和提高生產力。其次，我們預期自由現金流轉換率將在 95% 至 100% 之間，超過 5 億美元。這反映了資本支出投資的增加和營運資本的改善。第三，我們預期調整後的稅率約為 23%，而 2023 年為 19.5%。這反映了全球稅收標準變化帶來的 2.5 個百分點的影響。剩餘的升息與我們的收入結構有關，包括全年的 ECM。

Importantly, we expect to offset a meaningful amount of the cash tax impact of the change in global tax standards. A few additional 2024 assumptions include higher net interest expense of approximately $90 million; shares of approximately $168 million, corporate costs of approximately $95 million and CapEx of $85 million to $90 million.

重要的是，我們預計將抵消全球稅收標準變化帶來的大量現金稅影響。 2024 年的一些額外假設包括淨利息支出增加約 9,000 萬美元；股份約 1.68 億美元，公司成本約 9,500 萬美元，資本支出約 8,500 萬至 9,000 萬美元。

Moving to Slide 11 and our first quarter outlook. We expect organic sales growth in the range of 2% to 4% and year-over-year margin expansion. For earnings per share, we expect adjusted EPS in the range of $0.72 to $0.74, up 7% to 10% year-over-year. This includes a $0.04 negative impact from a higher tax rate, including approximately $0.03 from the change in global tax standards. Wrapping up. Our team delivered an outstanding 2023, and I believe we are well positioned for another great year.

轉到幻燈片 11 和我們的第一季展望。我們預計有機銷售額將成長 2% 至 4%，利潤率將年成長。對於每股收益，我們預計調整後每股收益在 0.72 美元至 0.74 美元之間，年增 7% 至 10%。其中包括較高稅率帶來的 0.04 美元負面影響，以及全球稅收標準變化帶來的約 0.03 美元負面影響。包起來。我們的團隊在 2023 年取得了出色的成績，我相信我們已準備好迎接下一個偉大的一年。

With that, please turn to Slide 12, and I will now turn the call back over to Beth.

接下來，請翻到投影片 12，我現在將把電話轉回給 Beth。

Thank you, Sara. Since spin, we have been executing on our strategy to drive growth and differentiated performance. Our strong financial track record demonstrates our strategy is working. High-growth verticals, new products and innovation plus global growth and acquisitions are key pillars of our growth strategy. As a result, we've had outstanding growth going from $2 billion in sales to well over $3 billion last year.

謝謝你，薩拉。自剝離以來，我們一直在執行推動成長和差異化業績的策略。我們強勁的財務記錄顯示我們的策略正在發揮作用。高成長的垂直產業、新產品和創新以及全球成長和收購是我們成長策略的關鍵支柱。結果，我們的銷售額取得了顯著的成長，從去年的 20 億美元增加到超過 30 億美元。

We have also delivered tremendous returns with segment income and adjusted EPS more than doubling since 2020. And we have generated approximately $1.5 billion in free cash flow. At our Investor Day last year, we laid out medium-term targets and have made significant progress. In the first year, we have already achieved our margin expansion target. We also have meaningfully exceeded our acquisition contribution and earnings per share growth. And we believe we have plenty of runway ahead of us.

自 2020 年以來，我們也帶來了巨大的回報，部門收入和調整後每股收益增加了一倍多。我們產生了約 15 億美元的自由現金流。在去年的投資者日上，我們制定了中期目標並取得了重大進展。第一年，我們就已經達成了利潤率擴張的目標。我們也顯著超過了收購貢獻和每股盈餘成長。我們相信我們前面還有足夠的跑道。

Please turn to Slide 13. We are building a strong track record. We have industry-leading products and solutions, and we are well positioned with strong secular tailwinds. We expect the government funding for infrastructure to flow this year and contribute to our growth over the next 5-plus years. We see significant growth opportunities with the electrification of everything. In particular, the acceleration of AI and the need for liquid cooling. We expect our Data Solutions business to continue to grow double digits in 2024 to beyond $500 million in sales, and we are building a pipeline for future growth.

請參閱投影片 13。我們正在建立良好的記錄。我們擁有業界領先的產品和解決方案，並且處於有利的長期有利地位。我們預計政府的基礎設施資金將在今年投入使用，並為我們未來五年多的成長做出貢獻。我們看到了一切電氣化帶來的巨大成長機會。特別是人工智慧的加速發展和對液體冷卻的需求。我們預計我們的數據解決方案業務將在 2024 年繼續實現兩位數成長，銷售額超過 5 億美元，並且我們正在為未來成長建立管道。

In addition, we are well positioned for the energy transition, from decarbonization to renewables, to power utilities. And with the acquisitions of ECM Industries and TEXA Industries, we have opportunities to grow these portfolios, expanding into high-growth verticals like energy storage as well as scaling through our channels, and growing globally.

此外，我們在從脫碳到再生能源再到電力公用事業的能源轉型方面處於有利地位。透過收購 ECM Industries 和 TEXA Industries，我們有機會擴大這些投資組合，擴展到能源儲存等高成長垂直產業，並透過我們的管道進行擴展，並在全球範圍內發展。

When it comes to new products, our innovation engine has never been stronger. We expect new products to add more than 2 points to sales growth and be margin accretive to overall nVent. Finally, we are creating value through capital allocation. We see ample opportunity to grow via acquisitions. We play in a highly fragmented $90 billion connect-and-protect space. Our acquisition framework serves as a flywheel to accelerate growth. We have a healthy pipeline and a good track record of strong returns. In addition, we are returning cash to shareholders and recently raised the quarterly dividend by 9%. We are confident we can continue to build on our strong track record and deliver for our customers and shareholders.

當談到新產品時，我們的創新引擎從未如此強大。我們預計新產品將為銷售成長增加 2 個百分點以上，並為整體 nVent 帶來利潤成長。最後，我們透過資本配置創造價值。我們看到了透過收購實現成長的充足機會。我們在一個高度分散、價值 900 億美元的連接和保護空間中開展業務。我們的收購框架充當加速成長的飛輪。我們擁有健康的管道和強勁回報的良好記錄。此外，我們也向股東返還現金，最近將季度股利提高了 9%。我們有信心能夠繼續鞏固我們良好的業績記錄，並為我們的客戶和股東提供服務。

Moving to Slide 14. Key to our success has been our people and culture and making nVent A Great Place to Work. We are focused on delivering for our customers, and having a positive impact on our communities. As we build a more sustainable and electrified world, ESG has been core to our strategy.

轉向投影片 14。我們成功的關鍵在於我們的員工和文化，以及使 nVent 成為理想的工作場所。我們專注於為客戶提供服務，並對我們的社區產生正面影響。隨著我們建立一個更永續和電氣化的世界，ESG 一直是我們策略的核心。

On this slide, you can see numerous awards and recognition that we have received. I will comment on a few of these. Recently, we were awarded a Gold sustainability rating from EcoVadis, placing us in the top 3% of companies assessed in our industry and in the 93rd percentile of all companies assessed. We were also recognized as one of America's greenest companies by Newsweek, and we were named for the first time to the Fortune Best Workplaces in manufacturing and production list. These are just a few of the many awards and recognitions that we have received. I'm extremely proud of our nVent team and everything we have accomplished and there's more to do.

在此投影片上，您可以看到我們獲得的眾多獎項和認可。我將評論其中的一些。最近，我們獲得了 EcoVadis 的可持續發展金級評級，使我們躋身行業內接受評估的公司前 3% 以及所有接受評估的公司的第 93% 之內。我們也被《新聞週刊》評為美國最環保的公司之一，並首次入選《財富》製造和生產領域最佳工作場所名單。這些只是我們獲得的眾多獎項和認可中的一小部分。我為我們的 nVent 團隊以及我們所取得的一切感到非常自豪，而且還有更多工作要做。

Wrapping up on Slide 15. 2023 was another year of outstanding performance for nVent. We delivered double-digit sales and earnings growth. We are well positioned with the electrification of everything, sustainability and digitalization trends. And we expect 2024 to be another year of strong sales and profit growth with robust cash flow. Our future is bright.

投影片 15 結束。2023 年是 nVent 表現出色的另一年。我們實現了兩位數的銷售額和獲利成長。我們在萬物電氣化、永續發展和數位化趨勢方面處於有利地位。我們預計 2024 年將是銷售和利潤強勁成長以及現金流強勁的另一年。我們的未來是光明的。

With that, I will now turn the call over to the operator to start Q&A.

現在，我將把電話轉給接線員以開始問答。

(Operator Instructions) And the first question will come from Joe Ritchie with Goldman Sachs.

（操作員說明）第一個問題將由高盛的 Joe Ritchie 提出。

Congrats on a nice end to the year.

恭喜今年有個美好的結局。

Thank you.

謝謝。

Thank you.

謝謝。

Let's just start off with the cadence. It's interesting that the first quarter is expected to be up 7% to 10% from an EPS standpoint yet, if the growth rate is modestly below what you're forecasting for the year. So it can't help us think that there's some conservatism baked into the guide. But just any thoughts around the stronger start to the year and kind of expectations through the remainder of the year?

讓我們從節奏開始。有趣的是，如果成長率略低於您對今年的預測，那麼從每股盈餘的角度來看，第一季預計將成長 7% 至 10%。所以這不能幫助我們認為指南中包含了一些保守主義。但對於今年的強勁開局以及今年剩餘時間的預期有什麼想法嗎？

Yes. Maybe, Joe, a couple of big things to note. One would just be Q1 does have the benefit of the carryover, the ECM acquisition. So you're seeing that in the acquisition contribution from a top line perspective, 13 points. And obviously, that's dropping down from an earnings per share standpoint.

是的。喬，也許有幾件大事要注意。其中之一就是第一季確實受惠於 ECM 收購的結轉。因此，從營收角度來看，收購貢獻為 13 個百分點。顯然，從每股收益的角度來看，這一數字正在下降。

I think the other thing, maybe to factor in, is we guide to that 2% to 4% organic growth in Q1 versus that full year of 3% to 5%, is that we are going to be lapping some of that channel inventory level adjustments beginning in Q2 and beyond. And I think the other piece, too, if you look at that from a segment standpoint, EFS has some strong double-digit laps here in Q1 and Q2.

我認為另一件事，也許要考慮的是，我們指導第一季有機增長 2% 到 4%，而全年有機增長 3% 到 5%，我們將覆蓋部分渠道庫存水平從第二季度及以後開始進行調整。我認為另一件事也是如此，如果你從細分市場的角度來看，EFS 在第一季和第二季有一些強勁的兩位數圈速。

So early start to the year, but we feel good about our 2% to 4% growth here in Q1. And I think one other thing, Joe, I would point out is that Q1 is our last lap, if you will, of the impact of that Russia exit. It was roughly 5 points to Thermal Management in Q4. We expect that to be roughly 4 points to thermal here in Q1.

今年開始還早，但我們對第一季 2% 至 4% 的成長感到滿意。我認為另一件事，喬，我要指出的是，如果你願意的話，第一季是我們俄羅斯退出影響的最後一圈。第四季的熱管理大約提高了 5 個百分點。我們預計第一季的熱值大約為 4 個百分點。

Got it. That's clear and helpful. I guess maybe it's a good segue also to what you're seeing from an inventory perspective. To your point, I think we've been 10 months into this destocking phase and volumes still exited the year negative. And so just expectations for volumes ultimately turning positive in '24. And then if you could provide any color on what price is embedded into that organic guide for '24, that would be helpful, too.

知道了。這很清楚並且有幫助。我想這也許也是你從庫存角度看到的一個很好的延續。就你的觀點而言，我認為我們進入去庫存階段已經有 10 個月了，但今年的銷售仍然為負。因此，對銷售的預期最終會在 24 年轉為正數。然後，如果您可以提供有關 24 年有機指南中嵌入的價格的任何顏色，那也會很有幫助。

Yes. Joe, let me start. When we ended Q4, we saw there was some continued inventory adjustments. But importantly, sell-through was positive. And as we enter 2024, we expect the build on inventory to be slow as we go forward in the year, and remember Sara pointed out, in Q2, that's when we really start to lap some of those inventory adjustments. And our view this year is with all the secular tailwinds, we believe we'll have strong volume growth, and I'll let Sara comment on pricing.

是的。喬，讓我開始吧。當我們第四季結束時，我們看到庫存持續進行了一些調整。但重要的是，銷量是積極的。當我們進入 2024 年時，我們預計今年的庫存成長將會緩慢，並且記住 Sara 指出，在第二季度，我們才真正開始進行一些庫存調整。我們今年的觀點是，在所有長期順風的情況下，我們相信我們將實現強勁的銷售成長，我將讓薩拉評論定價。

Yes. So from a price volume perspective, we do expect positive price in 2024. It will just contribute to a smaller piece of that overall growth because volume will be a bigger contributor of that. I think that's in the backdrop of inflation. We still expect it to be another inflationary year here in 2024, particularly as it relates to wage and labor rates. And maybe one other point I would just say is, that guidance of positive price, does take into account some carryover as well as realization from pricing actions that we've already communicated.

是的。因此，從價格數量的角度來看，我們確實預期 2024 年價格會呈正值。它只會對整體成長做出較小的貢獻，因為數量將是其中的更大貢獻者。我認為這是在通貨膨脹的背景下發生的。我們仍然預計 2024 年將是另一個通膨年，特別是因為它與工資和勞動力率有關。也許我想說的另一點是，積極價格的指導確實考慮了一些結轉以及我們已經傳達的定價行動的實現。

Your next question will come from Nigel Coe with Wolfe Research.

您的下一個問題將來自沃爾夫研究中心的奈傑爾·科。

I was hoping you could maybe get a bit more granular on the Data Solutions. Maybe kind of how that tracked during the fourth quarter? I know it's double digits, strong double digits. But more importantly, out of the '24, I mean double digits is obviously a very wide range. But just curious if it's closer to the 20% and 10%, any color there? And maybe quotably, what you're seeing in liquid cooling? Is that becoming a more material tailwind as we go forward?

我希望您能更詳細地了解數據解決方案。也許第四季的情況如何？我知道這是兩位數，很強的兩位數。但更重要的是，在 24 年中，我的意思是兩位數顯然是一個非常寬的範圍。但只是好奇它是否更接近 20% 和 10%，有什麼顏色嗎？也許可以引用一下，您在液體冷卻中看到了什麼？隨著我們的前進，這是否會成為更物質的動力？

Yes. So on our Data Solutions business, I think when we say strong double digits at the higher end of those double digits and the lower end of those double digits as you've commented. And really, that is the traction that we have. I would just say, with not only liquid cooling. Some of our WBT acquisition as well, and the key thing as we've talked about, is the acceleration of AI.

是的。因此，在我們的數據解決方案業務中，我認為當我們在這些兩位數的高端和這些兩位數的低端說強勁的兩位數時，正如您所評論的那樣。事實上，這就是我們所擁有的吸引力。我只想說，不僅僅是液體冷卻。我們的一些 WBT 收購以及我們所討論的關鍵是人工智慧的加速。

And so we're continuing to work with several hyperscale customers on accelerating liquid cooling solutions as well as through some of our standard product offerings with our cooling distribution unit and some of our rear door heat exchangers. Having those products served through our distribution channels, and all of that effort is ramping. And so we see a funnel of activity that takes us into 2025.

因此，我們將繼續與幾家超大規模客戶合作，加速液體冷卻解決方案的發展，並透過我們的一些標準產品以及我們的冷卻分配單元和一些後門熱交換器來提供服務。透過我們的分銷管道提供這些產品，所有這些努力都在加強。因此，我們看到了一個將我們帶入 2025 年的活動漏斗。

So our view is, as you start to see those more powerful GPU chips, and it's not only in data centers. Eventually, as we look at edge computing, you're going to see this proliferation of these type of components that need to be liquid-cooled. And so we feel that liquid cooling has applications even beyond Data Solutions. But we're very positive on our -- what the outlook is for this year and going several years into the future.

所以我們的觀點是，當你開始看到那些更強大的 GPU 晶片時，它不僅出現在資料中心。最終，當我們關注邊緣運算時，您將看到此類需要液體冷卻的組件的激增。因此，我們認為液體冷卻的應用甚至超出了數據解決方案。但我們對今年和未來幾年的前景非常樂觀。

Okay. So strong double digits implies, obviously, closer to 20% -- okay. And then just obviously, the plan has flattish margins. And so I'm just wondering, Sara, maybe if there's anything we need to consider from a first half versus second half? And how does that sort of set up look across the segments?

好的。顯然，如此強勁的兩位數意味著接近 20%——好吧。很明顯，該計劃的利潤率持平。所以我只是想知道，薩拉，也許上半場和下半場我們需要考慮什麼？這種設置在各個細分市場中看起來如何？

Yes. I would say that there's -- let me start here. From a first half, second half, it does include a bit more muted margin expansion here in the second half. And a couple of things we've even talked about in the context of our last quarter earnings. One is just the phase in an investment. We're going to continue to invest behind the great growth that we see in Data Solutions and particularly in Liquid Cooling and also in new products, and you see that providing great returns from a top line perspective. So that will phase in over the course of the year.

是的。我想說的是──讓我從這裡開始。從上半場到下半場，下半年的利潤率擴張確實更加溫和。我們甚至在上個季度收益的背景下討論了一些事情。其一隻是投資的一個階段。我們將繼續投資於數據解決方案，特別是液體冷卻以及新產品的巨大成長，從營收角度來看，這提供了巨大的回報。因此，這將在今年內逐步實施。

I think one specific thing I would call out is we've talked about bringing online, some additional capacity in liquid cooling specifically, and that gets sort of commissioned, if you will, kind of midpoint of the year. So there's some ramp-up costs associated with that, that we'll see here in the back half.

我想我要指出的一件具體事情是，我們已經討論過將一些額外的液體冷卻能力引入線上，如果你願意的話，這將在今年的中期投入使用。因此，存在一些與此相關的上升成本，我們將在後半部分看到。

I think the last point I would just say, we are beginning to lap some of those mix benefits that we've talked about the last couple of quarters in EFS and ECM. And so with those all included, if you look at it, it's still saying good organic growth, good profit growth. But we are going to see a bit more of a muted margin expansion in the back half of the year versus the first half. Maybe I would just end by it's still early in the year. So it reflects that perspective as well.

我想我想說的最後一點是，我們開始利用過去幾季在 EFS 和 ECM 中討論過的一些混合優勢。因此，如果你看一下所有這些，它仍然表明良好的有機成長，良好的利潤成長。但與上半年相比，我們將在今年下半年看到更多的利潤成長。也許我會以今年年初結束。所以它也反映了這種觀點。

Next question will come from Julian Mitchell with Barclays.

下一個問題將由巴克萊銀行的朱利安·米切爾提出。

So I just wanted to explore perhaps a sort of price volume element a little bit more on the top line. So is it sort of fair to say that the overall organic growth guide, total company, is sort of split 50-50 price versus volume? And then is it fair to say that your guide is sort of embedding volumes outside of Data Solutions are kind of flattish in 2024?

所以我只是想在頂線上更多地探索一種價格量元素。那麼，可以公平地說，整體有機成長指南（整個公司）的價格與銷售量之間的比例為 50-50 嗎？那麼，可以公平地說，您的指南在數據解決方案之外嵌入了一些卷，到 2024 年會有些平淡嗎？

So we would expect, Julian, more volume than price this year. So we would expect volume to be more than half versus where price is. And again, we're going to continue to manage that price plus productivity, more than offsetting inflation investments to be sure. And then from a volume perspective outside of Data Solutions, I think we talked a bit about this in our prepared remarks. But we do anticipate industrial growing with some of those positive reshoring and automation trends as well as commercial resi. Commercial resi has been strong for us and Enclosures, and also a little bit more muted on the EFS side. But overall, I see growth in energy with the energy transition plus commercial resi, and some of the industrial as well. So we do expect volume to be a stronger contributor to that overall organic top line of 3% to 5%.

因此，朱利安，我們預計今年的銷售量將超過價格。因此，我們預計成交量將是價格的一半以上。再說一次，我們將繼續管理價格加生產率，這肯定不僅僅是抵消通膨投資。然後，從數據解決方案之外的數量角度來看，我認為我們在準備好的發言中對此進行了一些討論。但我們確實預期工業將隨著一些積極的回流和自動化趨勢以及商業房地產的成長而成長。商業 Resi 對我們和 Enclosures 來說一直很強勁，而 EFS 方面則稍微低調。但總體而言，我看到能源轉型加上商業儲備以及一些產業的成長。因此，我們確實預期銷售量將對整體有機營收 3% 至 5% 的貢獻更大。

That's great. And just a follow-up around the segment sort of organic growth expectations for the year. Are we sort of thinking that Enclosures kind of lead the growth for the year as a whole as it did exiting 2023? And for Thermal Management, are we kind of assuming that can turn positive for the rest of the year after Q1 because you get through that last sort of Russia headwind?

那太棒了。這只是圍繞今年有機成長預期的細分市場的後續行動。我們是否認為，像 2023 年結束時那樣，圍欄行業在某種程度上引領了全年的成長？對於熱管理，我們是否假設第一季後的今年剩餘時間會出現積極變化，因為您克服了最後一種俄羅斯逆風？

Yes, that's exactly right. So we expect the stronger growth to be in Enclosures, but we expect EFS and Thermal both to have positive growth and volume growth in 2024.

是的，完全正確。因此，我們預計機櫃領域將出現更強勁的成長，但我們預計 EFS 和熱能在 2024 年都會出現正成長和銷售成長。

The next question will come from Deane Dray with RBC Capital Markets.

下一個問題將由加拿大皇家銀行資本市場部的迪恩德雷 (Deane Dray) 提出。

Can we circle back on the Data Solutions business and particularly the capacity expansion in liquid cooling? Can you size for us how much capacity you will have put in place? You said it would be commissioned midyear but size for us. And it sounds like most of that is rear door heat exchangers. That's really where the industry has the most immediate need and it's the fastest to retrofit. But is that fair that most of that is rear door heat exchangers?

我們可以回顧一下數據解決方案業務，特別是液體冷卻領域的產能擴張嗎？您能為我們估算一下您將投入多少產能嗎？你說它將在年中投入使用，但尺寸適合我們。聽起來大部分都是後門熱交換器。這確實是該行業最迫切需要且改造最快的地方。但其中大部分是後門熱交換器，這公平嗎？

Well, Deane, I would -- to start with your question of the capacity, as you know, we opened up a new factory in Mexico and -- as well as we opened a new distribution center here in Minnesota. And what that did is it allowed us to expand capacity in our Anoka facility. And effectively, we will have double the capacity that we have. We're also using some of our other plants globally around the world to increase our content on liquid cooling overall. So I would say we've got strong growth with some of our hyperscalers in some of those solutions. And I would say that we're also seeing our cooling distribution unit grow as well as the rear door heat exchanger. So we've got multiple fronts of where we're driving an expanded portfolio and growth.

好吧，迪恩，我想——首先從你的產能問題開始，正如你所知，我們在墨西哥開設了一家新工廠——並且我們在明尼蘇達州開設了一個新的配送中心。這使得我們能夠擴大 Anoka 工廠的產能。實際上，我們的產能將增加一倍。我們還在全球範圍內使用我們的一些其他工廠來整體提高我們的液體冷卻含量。所以我想說，我們的一些超大規模解決方案在其中一些解決方案中取得了強勁的成長。我想說的是，我們還看到我們的冷卻分配單元以及後門熱交換器的成長。因此，我們在多個方面推動產品組合的擴大和成長。

Right. That's a great opportunity. And then just second question. I guess you can take a victory lap on the new product introductions because that's almost double what your typical 50 new products goal each year. Is this a new standard? And just where does that take your Vitality Index?

正確的。這是一個很好的機會。然後是第二個問題。我想您可以在新產品推出上取得勝利，因為這幾乎是您每年 50 種新產品的典型目標的兩倍。這是一個新標準嗎？那麼你的活力指數會怎麼樣呢？

Well, I want -- thank you. We're really excited about new products. It's really important. And it's probably not so much the number as it is just the impact, right, in terms of -- and we measure that with revenue as well as vitality. We're on track to get to that 25%, which is what we set out as our midterm target at our Investor Day. And one of the things I would say is we've got more and more focus on velocity through our whole process, and that's one of the reasons that you're seeing us launch more products and faster and also our focus on platforms that allows us to configure off platforms. And those are a couple of the things that are really helping us drive our growth. But it's really important, and we focus on new products in these high-growth verticals like liquid cooling, and we focus on margin accretion as well.

嗯，我想要──謝謝。我們對新產品感到非常興奮。這真的很重要。與其說是數字，不如說是影響，對吧，就——我們用收入和活力來衡量。我們預計將達到 25%，這是我們在投資者日設定的中期目標。我要說的一件事是，我們在整個過程中越來越關注速度，這就是您看到我們推出更多產品、更快的原因之一，也是我們專注於允許我們的平台的原因之一配置平台外。這些是真正幫助我們推動成長的一些事情。但這確實很重要，我們專注於液體冷卻等高成長垂直領域的新產品，我們也關注利潤成長。

The next question will come from Jeff Sprague with Vertical Research.

下一個問題將由垂直研究公司的傑夫·斯普拉格（Jeff Sprague）提出。

I wonder if we could just come back to the tax. We've seen a lot of companies talking about the friction from the global minimum tax movement and some of these things going around. But this uptick is a lot more significant than we're seeing at others. Maybe just a little more color on kind of the what, the why and the how on where we've moved to here and do you think we're kind of sticky at this rate now?

我想知道我們是否可以回到稅收問題。我們看到很多公司都在談論全球最低稅收變動以及其中一些事情所帶來的摩擦。但這種上升比我們在其他地區看到的要顯著得多。也許只是多一點關於我們搬到這裡的內容、原因和方式的顏色，你認為我們現在以這種速度有點黏嗎？

So Jeff, I would say that 23% really captures where we are at today. But no doubt, we continue to work our tax planning as we always do. And that 23% tax rate really has 2 things. One, it does encompass and roll in the impacts of that global tax standard change, effective Jan 1, and that was really 2.5 point rate increase and that's at $0.11. The upper roughly 1 point really relates to 2 things, higher North America income and really rolling in that impact of ECM. We expected some of that as well to kind of carry over into 2024 here.

Jeff，我想說 23% 確實反映了我們今天的處境。但毫無疑問，我們將一如既往地繼續進行稅務規劃。 23% 的稅率實際上有兩件事。第一，它確實包含並涵蓋了 1 月 1 日生效的全球稅收標準變更的影響，這實際上是 2.5 個百分點的利率上漲，即 0.11 美元。上面的大約 1 個百分點實際上與兩件事有關，北美收入較高，以及 ECM 的影響真正滾動。我們預計其中一些也會延續到 2024 年。

I think there's a couple of things I said in my prepared remarks here, but I think it's worthy of just noting again is we expect to meaningfully offset the cash tax impact of this higher rate related to that global tax standard. And as we were working kind of the final element of our tax planning, we really prioritized the cash flow element of things so the cash taxes, which is adding a bit to our overall tax rate. But all in all, in 2024, we expect those cash taxes to be meaningful lower -- meaningfully lower than that overall tax rate.

我認為我在準備好的發言中說了幾件事，但我認為值得再次指出的是，我們預計將有意義地抵消與全球稅收標準相關的較高稅率的現金稅影響。當我們正在研究稅務規劃的最後一個要素時，我們確實優先考慮了現金流要素，因此現金稅，這增加了我們的整體稅率。但總而言之，到 2024 年，我們預計這些現金稅將顯著降低——顯著低於整體稅率。

Great. Understood. And then just on the Data Solutions vertical. It sounds like it came in at roughly $550 million, given your kind of $550 million comment for 2024. But can you just kind of confirm that where we finished and any other color kind of power versus cooling inside that number?

偉大的。明白了。然後是數據解​​決方案垂直領域。鑑於您對 2024 年 5.5 億美元的評論，聽起來它的收入約為 5.5 億美元。但是您能否確認一下我們的完成情況以及該數字內的任何其他顏色類型的功率與冷卻？

So Jeff, we finished the year over $450 million, and we said we're well on our way to be over $500 million this year. And I think as we see our growth, certainly, liquid cooling is increasing in terms of the percentage of that overall revenue as we just see that continue to accelerate. And we're going to see liquid cooling solutions proliferate into other areas like energy, storage or edge devices and industrial over time as well. So we see a nice trajectory and future growth there.

傑夫，我們今年的收入超過了 4.5 億美元，我們表示今年的收入將有望超過 5 億美元。我認為，當我們看到我們的成長時，當然，液體冷卻佔總收入的百分比正在增加，因為我們剛剛看到它繼續加速。隨著時間的推移，我們還將看到液體冷卻解決方案擴散到能源、儲存或邊緣設備以及工業等其他領域。因此，我們看到了良好的發展軌跡和未來的成長。

Okay, great. I thought you said $550 million for 2024. My bad.

好的，太好了。我以為你說的是 2024 年 5.5 億美元。我的錯。

Your next question will come from Jeff Hammond with KeyBanc Capital Markets.

您的下一個問題將來自 KeyBanc Capital Markets 的 Jeff Hammond。

Just on the order rates. I think you said down slightly. I don't know what were kind of the trends through the quarter or if there are any segments that grew or maybe more of an outlier within that?

只是關於訂單費率。我想你說得稍微低一點。我不知道本季的趨勢是什麼，或者是否有任何細分市場有所成長，或者其中是否有更多的異常值？

The Q4 always, as we get through the end of the year and distributors, are looking at their inventory position. I mean, I don't know that there's any trend there. I would just comment that we actually did see EFS orders positive in the quarter.

隨著年底的到來，第四季度經銷商總是關注他們的庫存狀況。我的意思是，我不知道那裡有什麼趨勢。我只想評論說，我們確實看到本季的 EFS 訂單是正面的。

Okay. And then would you expect those orders to kind of reaccelerate once you get through this destock? It sounds like you think it's done.

好的。那麼，一旦你完成這次去庫存，你會期望這些訂單會重新加速嗎？聽起來你認為事情已經完成了。

I think the word I would say is that they're slowly going to adjust and build. So I made the comment that we saw positive sell-through, and so what we do expect is that over time, we're going to see inventory levels build. But I wouldn't call that an acceleration, I'd say that they'll slowly improve.

我想我想說的是他們正在慢慢調整和建造。因此，我評論說，我們看到了積極的銷售量，因此我們所期望的是，隨著時間的推移，我們將看到庫存水準的上升。但我不會稱之為加速，我會說他們會慢慢改進。

Okay. And then ECM, I had -- came in a little bit light versus my model. I didn't know if that was some slowness or seasonality of the business or any other timing issues?

好的。然後 ECM，我的模型比我的模型稍微亮了一點。我不知道這是否是業務的緩慢或季節性或任何其他時間問題？

Yes, Jeff, I think that's basically just seasonality. It was right where we had expected it to be. We talked a little bit about this last quarter that while it is seeing some of the residential headwinds, the distribution part of that business continues to grow, and it did so in Q4 as well. So you can think about that ECM business from a seasonality standpoint to look a lot like the EFS business.

是的，傑夫，我認為這基本上只是季節性。這正是我們所期望的。我們在上個季度談到了這一點，儘管住宅業務遇到了一些阻力，但該業務的分銷部分仍在繼續增長，第四季度也是如此。因此，您可以從季節性的角度考慮 ECM 業務，它看起來很像 EFS 業務。

Next question will come from Brian Drab with William Blair.

下一個問題將由布萊恩·德拉布和威廉·布萊爾提出。

I was wondering first on the Thermal business. Did you see any impact from warmer weather, especially in some of the industrial applications in Canada?

我首先想知道熱能業務。您是否看到天氣變暖帶來的影響，尤其是加拿大的一些工業應用？

I would say we actually saw our product sales in the quarter improve and increase. And some of that is just inventory levels were down in the channels. And when there were pockets of cold weather, we saw product sales increase. So nothing to call out or note there, really.

我想說的是，我們實際上看到本季的產品銷售有所改善和增加。其中一些只是渠道中的庫存水準下降。當天氣寒冷時，我們看到產品銷售增加。所以真的沒有什麼值得指出或註意的。

Okay. And so that's not affecting your outlook really for the Thermal business in terms of the MRO, in those colder regions seeing -- so warmer weather isn't really a trend that you're seeing a concern in the near term in that business?

好的。因此，這並沒有真正影響您對熱能業務的 MRO 前景，在那些較冷的地區，您認為天氣變暖並不是您認為該業務近期值得關注的趨勢嗎？

Not in the near term. And I think one of the things as we talk about the energy transition, it actually takes more content, more controlling elements and because you're trying to maintain a temperature. And so remember, our Thermal business isn't just about heating -- freeze protection. It's also about maintaining process temperature. And so we actually see that the energy transition with decarbonization and LNG and clean fuels and biofuels that there's a great opportunity in front of us.

短期內不會。我認為，當我們談論能源轉型時，其中一件事是，它實際上需要更多的內容、更多的控制元素，而且因為你必須努力保持溫度。因此請記住，我們的熱能業務不僅僅涉及加熱 - 防凍保護。它還涉及維持製程溫度。因此，我們實際上看到，脫碳、液化天然氣、清潔燃料和生物燃料的能源轉型在我們面前有一個巨大的機會。

Okay. Yes. Sorry, if I was dwelling on that point a little bit, just one of your main competitors talked a lot about that. recently. And so I just wanted to get a sense for you, if that was impacting you. And then the last question for me is, could you comment at all on the gross margin trajectory for the year? And whether any of the capacity additions that you're putting in place might have any -- put any ups and downs into the forecast for gross margin '24?

好的。是的。抱歉，如果我想稍微討論一下這一點，那麼您的一位主要競爭對手就這一點談了很多。最近。所以我只是想了解這是否對你產生了影響。我的最後一個問題是，您能否對今年的毛利率軌跡發表評論？您正在增加的產能是否會影響 24 年毛利率的預測？

Yes. So we talked about that a bit earlier, meaning from a margin perspective, we believe it's going to be stronger in the first half versus the second half. In part, you're going to have ECM rolling in here incrementally and that is accretive to the overall margins. But in the back half, we expect that to be a bit more muted with those phased-in investments, R&D, new products, as well as in our high-growth verticals, including, as you just alluded to, some of those ramp-up costs as we put some of our new capacity lines into commission, if you will.

是的。因此，我們早些時候討論過這一點，這意味著從利潤角度來看，我們相信上半年的表現會比下半年更強。在某種程度上，你將讓 ECM 逐漸在這裡滾動，這會增加整體利潤。但在下半年，我們預計，隨著那些分階段的投資、研發、新產品以及我們的高成長垂直產業的發展，這種情況會更加溫和，包括，正如您剛才提到的，其中一些成長 -如果您願意的話，我們將一些新的產能線投入使用，從而增加成本。

I think the other thing just to keep in mind, and again, this is consistent with what we called out in the last quarter or 2. We did have some mix benefits in the EFS and ECM businesses that we'll be [getting] to lap. But all in, expect good top line growth as well as good profit growth.

我認為另一件事要記住，這與我們在上一兩個季度所呼籲的一致。我們確實在 EFS 和 ECM 業務中獲得了一些混合優勢，我們將[得到]一圈。但總而言之，預計收入將實現良好成長，利潤也將實現良好成長。

The next question will come from Vlad Bystricky with Citigroup.

下一個問題將由花旗集團的 Vlad Bystricky 提出。

So I just wanted to ask, I think you mentioned in your comments that you saw APAC up low double digits with solid growth in China. So -- and obviously, we've seen sort of growing returns around the China macro outlook. So can you just talk about what was really behind that strength that you saw? And how you're thinking about the outlook for China going forward?

所以我只是想問，我想你在評論中提到你看到亞太地區增長了低兩位數，而中國增長強勁。因此，顯然，我們已經看到中國宏觀前景的回報不斷增長。那麼您能談談您所看到的力量背後的真正原因嗎？您如何看待中國未來的前景？

Well, first of all, remember, China represents less than 5% of our sales. So it's not significant. And over the last several years, we've really focused our -- on the high-growth verticals in China. And so therefore, that's where we think we can win and be competitive. And so we saw some growth in both our Enclosures segment where we focus on areas like Transportation or Data Solutions. And we saw some growth in our Thermal Management business with some of our focus on key projects, in particular, chemical. So I think for us, it's really been knowing where the growth is and ensuring that we are very focused on those key high-growth verticals. But overall, it's not a significant portion of our portfolio.

首先，請記住，中國市場僅占我們銷售額的不到 5%。所以這並不重要。在過去的幾年裡，我們真正專注於中國的高成長垂直市場。因此，這就是我們認為我們能夠獲勝並具有競爭力的地方。因此，我們在專注於運輸或數據解決方案等領域的機櫃領域看到了一些成長。我們的熱管理業務取得了一些成長，其中一些重點放在關鍵項目上，特別是化學項目。所以我認為對我們來說，真正重要的是了解成長在哪裡，並確保我們非常專注於那些關鍵的高成長垂直領域。但總的來說，它並不是我們投資組合的重要組成部分。

Understood. And that's helpful color. And then just on the capital allocation front, with net leverage now sort of back down toward the lower end of your target range, can you just talk about how you're thinking about the potential for sizable incremental M&A? And sort of your capacity from a management perspective as you're still integrating ECM and TEXA to do larger M&A?

明白了。這是有用的顏色。然後，就資本配置而言，隨著淨槓桿率現在回落到目標範圍的下限，您能否談談您如何看待大規模增量併購的潛力？當您仍在整合 ECM 和 TEXA 進行更大規模的併購時，從管理角度來看您的能力如何？

So I think from a standpoint of -- we've now done 6 deals as a company, and I think we've got a good track record of driving both growth and returns, and we have a framework that we've shared at our Investor Day about how we think about great portfolios. And our view is we're -- we think about our ability to execute as well. But over the course of the year, we would expect that we're going to have the opportunity to pursue some M&A and you never quite control the timing of when M&A happens. But as we always think about it, we want to make sure that they're the right strategic deals, that we have the ability to execute and the ability to scale those opportunities and generate the returns.

所以我認為，從一個角度來看，作為一家公司，我們現在已經完成了 6 筆交易，我認為我們在推動成長和回報方面擁有良好的記錄，並且我們有一個在我們的公司中分享的框架。關於我們如何看待優秀投資組合的投資者日。我們的觀點是，我們也會考慮我們的執行能力。但在這一年中，我們預計我們將有機會進行一些併購，而你永遠無法完全控制併購發生的時間。但正如我們一直在思考的那樣，我們希望確保它們是正確的策略交易，我們有能力執行，有能力擴大這些機會並產生回報。

The next question will come from Scott Graham with Loop.

下一個問題將由來自 Loop 的 Scott Graham 提出。

First of all, congratulations on another terrific quarter, great execution. I wanted to take the last question, maybe the next step. If we go to the high end of your target leverage, it seems like you will have this year, another $1 billion to be able to deploy, again, at the high end. And I'm just -- and that does not include what you get back in EBITDA, right? So that's just the one pass. I'm just wondering, is your pipeline -- what does it look like? Which of the areas maybe of the company? Maybe you can share with us where it's a little bit stronger? And $1 billion in capacity would mean that you can kind of do this year, which you did last year. Is that possible?

首先，恭喜又一個出色的季度，出色的執行力。我想回答最後一個問題，也許是下一步。如果我們達到您的目標槓桿的高端，那麼今年您似乎將有另外 10 億美元可以再次部署在高端。我只是——這不包括你得到的 EBITDA，對吧？所以這只是一次通過。我只是想知道，你的管道是什麼樣的？公司可能屬於哪些領域？也許您可以與我們分享它的強點在哪裡？ 10 億美元的產能意味著你今年可以做到，就像你去年所做的那樣。那可能嗎？

Our pipeline is very strong. And we -- and as you know, you have to cultivate relationships because sometimes, we're doing deals where we know of those companies. Sometimes, it's an auction process. So we feel very good in terms of our pipeline and the opportunity to pursue a deal or two like we did last year. And one of the things that we've said is it has to be a great product portfolio in a high-growth vertical. So what you've seen us do in the last couple of years, are we've done some deals that are focused around Data Solutions. We've done some deals that have given us a portfolio around cooling that we can expand into areas like industrial and energy storage. So overall, we just think high-growth vertical focus, great product portfolio that we can scale and that we have the ability to execute. So again, acquisitions have been a key part of our growth strategy.

我們的管道非常強大。如你所知，我們必須培養關係，因為有時我們會在我們了解這些公司的地方進行交易。有時，這是一個拍賣過程。因此，我們對我們的管道以及像去年那樣尋求一兩筆交易的機會感覺非常好。我們說過的一件事是，它必須是高成長垂直領域的出色產品組合。因此，您在過去幾年中看到我們所做的，是我們完成了一些專注於數據解決方案的交易。我們已經完成了一些交易，為我們提供了圍繞冷卻的產品組合，我們可以將其擴展到工業和能源儲存等領域。因此，總的來說，我們只是認為高成長的垂直焦點，我們可以擴展並且有能力執行的優秀產品組合。同樣，收購一直是我們成長策略的關鍵部分。

Understood. I just was also wondering within that Sara, does ECM pose any restrictions on that segment for M&A?

明白了。我只是想知道，Sara，ECM 是否對該細分市場的併購有任何限制？

So I'll answer that. So I think from the standpoint of whenever we do a deal, we think about our ability to execute. And we think about that by segment, we think about that by geography. So will -- at the time -- when those opportunities arise, that will be part of our consideration.

所以我會回答這個問題。所以我認為，從每當我們達成交易的角度來看，我們都會考慮我們的執行能力。我們按細分市場、地理位置來考慮。因此，當這些機會出現時，這將是我們考慮的一部分。

Got it. My last question is on the organic and this is just sort of a question by vertical. I know you were sort of asked by segment earlier. I'm assuming that Infrastructure will lead again with Data Center in there. I was just wondering if you might be able to rank the other 3 verticals? And what your thinking is for organic this year.

知道了。我的最後一個問題是關於有機的，這只是一個垂直問題。我知道早些時候有人問過你。我假設基礎設施將再次領先，資料中心在那裡。我只是想知道您能否對其他 3 個垂直領域進行排名？以及您對今年有機食品的看法。

Yes. So within that 3% to 5% organic growth, Infrastructure by far will lead. We continue to see that growing strong double digits. Industrial, we also expect to see growth in the Industrial, really fueled by reshoring and some of these stronger secular trends. And Commercial, we expect to see more modest growth in Commercial resi being soft. You can kind of look at that as roughly flat. And then Energy growing. Importantly with the energy transition, and we see some strong backlog, and we see that in a strong backlog of Thermal Management.

是的。因此，在 3% 到 5% 的有機成長中，基礎設施目前將處於領先地位。我們繼續看到這一數字強勁成長兩位數。工業方面，我們也預期工業將出現成長，這實際上是由回流和一些更強勁的長期趨勢所推動的。商業方面，我們預期商業房地產的成長將更為溫和。你可以將其視為大致平坦。然後能量增長。重要的是，隨著能源轉型，我們看到了一些大量的積壓，我們在熱管理方面也看到了這一點。

The next question will come from David Silver with CL King.

下一個問題將由 David Silver 和 CL King 提出。

A couple of questions, and I hope I didn't miss this earlier, but I was hoping you did make several comments about the ECM acquisition. I'm not really sure I may have missed this, but did you provide kind of an accretion total for the time that it was part of your portfolio in 2023 or maybe for the fourth quarter? I recall you talked about the sales, the revenue growth impact. But wondering about that. And then maybe in terms of synergy capture. I mean, would it be reasonable to expect the first half of '24 to have incremental accretion above and beyond what we saw in 2023?

有幾個問題，我希望我之前沒有錯過這個問題，但我希望您確實對 ECM 收購發表了一些評論。我不太確定我可能錯過了這一點，但您是否提供了 2023 年或第四季度它作為您投資組合一部分時的累積總額？我記得你談到了銷售、收入成長的影響。但對此感到好奇。然後也許是在協同效應捕獲方面。我的意思是，預計 24 年上半年的增量成長將超過 2023 年的水準是否合理？

Yes. So David, we completed ECM acquisition mid-May, and that contributed $0.16 to EPS in 2023, so well above our initial estimations of that being $0.08 to $0.10. So strong contribution there. And obviously, we expect some carryover benefit in 2024. And think about that in that kind of $0.07 to $0.08 range here, benefiting mostly Q1, but some into Q2 as well.

是的。 David，我們在 5 月中旬完成了 ECM 收購，這為 2023 年每股收益貢獻了 0.16 美元，遠高於我們最初估計的 0.08 美元至 0.10 美元。那裡的貢獻如此之大。顯然，我們預計 2024 年會出現一些結轉效益。想想這裡的 0.07 美元到 0.08 美元的範圍，大部分受益於第一季度，但也有一些受益於第二季度。

Okay. Great. I have a question about your CapEx budget. So your company have had a trend line CapEx of, I don't know, $40 million to $45 million for several years before 2023. And you're guiding to a number, basically double that next year. And I'm mostly interested in the discretionary portion of that budget. But beyond, I guess, some liquid cooling. Although I think a lot of the spend has been done already. But where should we think that the highest priorities for your -- the discretionary portion of your 2024 CapEx spend is going to be directed?

好的。偉大的。我對你們的資本支出預算有疑問。因此，在 2023 年之前的幾年裡，你們公司的資本支出趨勢線（我不知道）為 4,000 萬至 4,500 萬美元。你們所指導的數字基本上是明年的兩倍。我最感興趣的是預算中可自由支配的部分。但我想，除了一些液體冷卻之外。儘管我認為很多支出已經完成。但是，我們應該認為您的 2024 年資本支出的可自由支配部分的最高優先順序將用於何處？

Well, maybe I would start by saying that higher CapEx really started in the context of 2023. So that CapEx grew over 40% or over 50% year-on-year, really reflecting some folding of ECM, but really mostly investments in our capacity. And capacity ahead of the great demand and visibility that we see in Data Solutions, but also new products as well as just underlying growth and productivity. So we go through a rigorous kind of capital prioritization process and look at prioritizing growth, and ensuring that we've got the right productivity.

好吧，也許我首先要說的是，更高的資本支出確實是在2023 年開始的。因此，資本支出同比增長超過40% 或超過50%，這確實反映了ECM 的一些折疊，但實際上主要是對我們產能的投資。容量領先於我們在數據解決方案中看到的巨大需求和可見性，還有新產品以及潛在的成長和生產力。因此，我們經歷了嚴格的資本優先順序流程，並考慮優先考慮成長，並確保我們擁有適當的生產力。

And more so if you look at kind of allocation of that capital this year versus where it's been in the past, more and more of that capital is being allocated towards growth. And we have strict returns, very focused on that return on invested capital, in order to help us prioritize that overall. So you can think about elevated CapEx really in the context of first, capacity and second being new products. Really third, probably being new digital platforms really helping to enable that growth in productivity. And then from there, we rack and stack based on returns.

更重要的是，如果你看看今年的資本配置與過去的情況相比，你會發現越來越多的資本被配置用於成長。我們有嚴格的回報，非常注重投資資本的回報，以幫助我們優先考慮整體。因此，您可以在第一方面考慮資本支出的增加，第二方面是新產品。第三，可能是新的數位平台真正有助於生產力的成長。然後從那裡，我們根據退貨進行貨架和堆疊。

Okay. Very helpful. I'm going to sneak in one more, and I will stipulate that this question is probably impossible to answer precisely. But it's been mentioned, this has to do with tax policies and what we should think about when we're modeling maybe the out years for your company. So you are kind of indicating there is going to be a step up in kind of your permanent tax rate going forward. And again, I'm fudging the cash tax versus nominal rate. But the tax regime is getting a little tighter here. As you look out on the various issues, some of which you touched on here, would you think that there's going to be further incremental taxation issues to deal with, let's say, beyond 2024? In other words, should we pencil in a somewhat higher tax rate for 2025 and beyond?

好的。很有幫助。我要再偷偷地插一句，我會規定這個問題可能無法準確回答。但有人提到，這與稅收政策以及我們在為貴公司建模可能的未來幾年時應該考慮的問題有關。所以你有點表明你的永久稅率將會提高。我再一次捏造了現金稅和名義稅率。但這裡的稅收制度正變得更加嚴格。當您審視各種問題時（您在這裡提到了其中一些問題），您是否認為 2024 年後還會有進一步的增量稅務問題需要處理？換句話說，我們是否應該在 2025 年及以後製定稍高的稅率？

Yes. So I wouldn't begin to speculate on what future tax regulations may or may not come to fruition. I would just come back to kind of our tax planning. That change in global tax standards was one of the bigger tax changes that we've seen in quite some time. We did a lot of rigorous tax planning there, on really prioritizing that cash flow aspect of things. And we're going to continue to work with evolving regulations and a work, that effective tax planning accordingly.

是的。因此，我不會開始猜測未來的稅務法規可能會實現或不會實現。我只想回到我們的稅務規劃。全球稅收標準的變化是我們在相當長一段時間內看到的較大的稅收變化之一。我們在那裡做了很多嚴格的稅務規劃，真正優先考慮現金流方面的事情。我們將繼續配合不斷變化的法規和工作，並相應地進行有效的稅務規劃。

This concludes our question-and-answer session. I would like to turn the conference back over to Ms. Beth Wozniak for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議轉交貝絲·沃茲尼亞克女士發表閉幕詞。請繼續。

Thank you for joining us this morning. We are proud of our strong 2023 and believe the electrification of everything, sustainability and digitalization are driving demand for our products and solutions. We are excited for 2024. I am grateful for the outstanding work of our team to support our customers and execute on our growth strategy. Thanks again for joining us. This concludes the call.

感謝您今天早上加入我們。我們為 2023 年的強勁表現感到自豪，並相信一切電氣化、永續發展和數位化正在推動對我們產品和解決方案的需求。我們對 2024 年感到興奮。我感謝我們團隊在支持客戶和執行我們的成長策略方面所做的出色工作。再次感謝您加入我們。通話就此結束。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。